Dallas-based Bradford Cos. is the new owner of Uptown Tower, finally bringing a troubled chapter in the building’s history to a close.
The deal closed late Thursday afternoon, said Weitzman president of institutional office investments Creighton Stark, who brokered the deal on behalf of the previous owner, Houston-based Whitestone Uptown Tower.
Whitestone purchased the 4144 North Central Expressway property in 2013. It was built in 1982 and renovated in 1994.
“The property faced capital markets challenges, as well as challenges from ownership,” Stark said. “There was a tremendous amount of capital needed to put into maintenance to compete with neighboring properties. The property hadn’t been improved in a long time — maybe never.”
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In 2023, the 253,000-square-foot, 12-story tower was more than 80% leased, but Stark said a lack of common-area maintenance led to tenant attrition, bringing its occupancy down to around 52% and putting up barriers to effectively leasing up the property.
Current tenants include Kastl Law, Androvett Legal Media, Dallas Counseling & Treatment Center and Trading Card World, with marketing materials noting large blocks and upper-floor space remain vacant for lease.
Last year, a creditor sought to compel owners to sell the property as it was in foreclosure. That December, Whitestone entered Chapter 11 bankruptcy protection.
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Stark said many legal hurdles had to be surmounted, but the sale itself was traditionally marketed.
“That was about the only thing about the sale that was traditional,” Stark said.
The building was offered to potential buyers at a “significant discount to replacement cost,” meaning the property was offered at a lower price than what it would cost to build a similar building from the ground up, including land, construction, permits and other fees.
Stark said the property was sold at a discount because the owners “weren’t willing to spend the money it needed to be habitable.”
While the final value of the sale was not disclosed, $26 million had been suggested as the minimum bid in 2024.
Dallas Central Appraisal District currently values the property at $22 million.
Stark said Bradford Cos., which did not immediately respond to a request for comment, planned to reposition it to compete with similar Uptown properties. That includes renovating common areas, including the lobby.
“We wanted a responsible, vertically integrated buyer who would be able to take care of the building,” Stark said.
Some of the expenses noted in bringing the building up to snuff include around $2 million for new air conditioning, as well as other structural improvements.
Ultimately, seven offers were fielded with Bradford’s being the most competitive.